Speaking at Chatham House think tank in London, he said the plan that US President Donald Trump calls the "deal of the century" was in fact "the consecration of (Palestinians') century-old ordeal", the BBC reported on Friday.
It is unclear whether the plan will be based on the so-called "two-state solution" -- a long-standing formula for resolving the conflict by creating a Palestinian state alongside Israel, with Jerusalem a shared capital.
Malki said all the indications were that "this (US) administration is preparing to give its stamp of approval to Israel's colonial policies".
"When it comes to taking the lead on peace efforts, the world left the steering wheel in the hand of a reckless driver... with a view that we should wait till the reckless driver goes over a cliff or runs over the Palestinian people (before doing) something about it," he said.
Palestinians claim the territories for a future Palestinian state.
The settlements are considered illegal under international law, though Israel disputes this.
Malki said the Trump administration's plan offered "no independence, no sovereignty, no freedom and no justice - and if (the US) do not think that this situation will have an impact on the future of Israel and the region one way or another, they are the ones that are delusional and not us".
"Our people have not suffered so long or endured so much to simply change the size of their chains," he said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)